Palladium Hotel Group VP Pilar Arizmendi-Stewart Discusses the Future of the All-Inclusive Concept

Palladium Hotel Group is in growth mode. In addition to expanding its Grand Palladium Select Collection in Mexico and the Dominican Republic, the hotelier is launching a new brand, The Unexpected Hotels, and has announced ambitious expansion plans in Europe and the Middle East.

In this exclusive interview, Pilar Arizmendi-Stewart, the company’s VP of sales and marketing in the Americas, shares details about the growth strategy and discusses key industry trends.

TP: Palladium Hotel Group has a lot of new projects in the pipeline. Which regions are showing the strongest growth potential?

PAS: Mexico and the Caribbean remain essential destinations for North American travelers seeking all-inclusive resort experiences, and we’ve seen tremendous growth in Europe, the Middle East and Asia.

Upcoming projects include the debut of The Unexpected Ibiza Hotel …along with the launch of The Unexpected Hotels brand, inspired by Ushuaïa Ibiza Beach Hotel. This will mark the debut of the new brand, the Unexpected Hotels, through which the company aims to expand internationally.

We are also working on an ambitious expansion plan with strategic focus on the Middle East and Asia — specifically Singapore, Vietnam, Bali and Thailand, as well as the Middle East — as key areas for the coming years. Additionally, the group is exploring opportunities in the United States, Mexico, major Latin American capitals, Europe and Mediterranean tourist hotspots, including Morocco, Greece, and Croatia, among others.

TP: What are the biggest changes in the all-inclusive segment overall?

PAS: The all-inclusive model now focuses on personalization, elevated dining and immersive experiences. Palladium Hotel Group has adapted by enhancing gastronomy, integrating wellness and offering tailored services. TRS Hotels, a luxury adults-only escape, provides sophistication with all-butler suites, while Grand Palladium Hotels & Resorts ensures flexibility for families and groups, redefining all-inclusive hospitality.

TP: How has the profile of the typical all-inclusive guest changed?

PAS: Over the last decade, the typical all-inclusive guest has become more discerning, seeking unique, personalized experiences over just convenience. Today’s travelers are looking for high-quality dining, wellness options, and authentic local experiences. They want more than traditional amenities; they crave bespoke services, sustainability and immersive activities that reflect the culture of the destination, all while enjoying the ease of an all-inclusive package.

TP: With more luxury brands entering the all-inclusive space, how does Palladium Hotel Group differentiate itself from the competition?

PAS: Palladium Hotel Group differentiates itself by offering a blend of uniqueness, exclusivity and flexibility that appeals to a wide range of travelers. Additionally, Palladium Hotel Group’s mission is to turn guests into lifelong fans with a strong commitment to innovation and excellence. This combination of high-end offerings with broad appeal allows us to meet the diverse needs of modern travelers.

TP: How does your company appeal to the demand for more locally immersive experiences?  

PAS: To meet this demand, we’ve incorporated authentic cultural experiences into our all-inclusive offerings. This comprises local culinary experiences with regional flavors at our restaurants, destination-inspired cooking classes, locally inspired dance lessons and much more, allowing guests to fully immerse themselves in the spirit of each destination. Our goal is to provide not just a vacation, but a deeper connection to the places we serve, enriching the guest experience and fostering lasting memories.

TP: Palladium Rewards has seen impressive growth, with a membership at 1.1 million members. How important are loyalty programs for the all-inclusive market?

PAS: Palladium Rewards, our own loyalty program, has been a key driver of repeat bookings and customer loyalty. By offering exclusive perks and benefits, Palladium Rewards helps strengthen relationships with our guests, encouraging long-term engagement and repeat visits, in line with our mission to turn guests into lifelong fans.

TP: Hyatt’s recent announcement of its plan to acquire Playa Hotels & Resorts is a significant change in the competitive landscape. What impact do you think this kind of consolidation will have on the all-inclusive industry?

PAS: This will likely increase competition within the all-inclusive industry, creating a larger, more streamlined offering that can leverage economies of scale and enhance its services. This could lead to more standardized experiences across brands, potentially reducing differentiation among resorts. Palladium Hotel Group keeps evolving its proposal to innovate in a very competitive market to aim to exceed guest expectations. We believe in a value proposition that focuses on personalized services, authentic experiences and world-class entertainment, allowing us to stand out.

TP: With major hospitality groups investing heavily in all-inclusives, do you foresee more consolidation?

PAS: Yes, more consolidation in the all-inclusive sector seems likely, as it potentially represents higher profits and there’s a growing demand for this model, especially in popular leisure destinations like the Caribbean, Mexico, and Spain. The focus on enhancing guest experiences, building loyalty programs and taking advantage of direct distribution strategies possibly makes consolidation moves an attractive growth opportunity for some [parts] in the market.

On another note, loyalty programs will also become more significant, as guests will likely be drawn to staying within a hotel brand family to maximize rewards. This could influence how travelers choose their resorts, placing more emphasis on brand recognition and the perks tied to loyalty membership.

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